Employment Cost Calculator for United Kingdom
Calculate your complete hiring costs for United Kingdom employees, including payroll taxes, social security contributions, employee benefits, and management fees. This salary calculator provides accurate employer cost estimates for informed hiring decisions.
Employer Tax Contributions
| Tax Type | Rate | Base |
|---|---|---|
| Employer's National Insurance (Class 1 Secondary) | 15% (from April ) | Employee earnings above £5,000 annually (from April ) |
| Apprenticeship Levy | 0.5% | Annual pay bill over £3 million |
| PAYE Income Tax | Employee's marginal rates | Employee's gross pay |
Filing & Compliance
- Register as an employer with HMRC before your first payday if you pay an employee £96 or more weekly, employ someone receiving a pension, or use subcontractors under the Construction Industry Scheme.
- PAYE (Pay As You Earn) payments are due by the 22nd of the next tax month if paying electronically, or by the 19th if paying by post.
- Submit final PAYE submission (FPS) for the tax year by April 19.
Income Tax Brackets
| Income Range | Tax Rate |
|---|---|
| Up to £12,570 | 0% |
| £12,571 to £50,270 | 20% |
| £50,271 to £125,140 | 40% |
| Over £125,140 | 45% |
Employee Contributions
| Deduction Type | Rate | Cap |
|---|---|---|
| National Insurance (Class 1) | 8% | On earnings between £12,570 and £50,270 annually |
| National Insurance (Class 1) | 2% | On earnings over £50,270 annually |
| Student Loan (Plan 1) | 9% | On earnings over £26,065 annually |
| Student Loan (Plan 2) | 9% | On earnings over £28,470 annually |
Personal Allowances
- Standard Personal Allowance: £12,570
- Allowance reduces by £1 for every £2 earned over £100,000
- Allowance is zero if income is £125,140 or above
